Page 15 - DMEA Week 03 2021

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Pipeline leak causes Libyan

oil output to dip

LIBYA LIBYA’S National Oil Corp. (NOC) said on Jan- been neglected or have incurred damage within
uary 16 that the country’s crude oil production the last few years, owing to fighting between rival
The pipeline to Es had dropped by around 200,000 barrels per day factions. The signing of a ceasefire between the
Sider is not the only (bpd) following the shutdown of a key pipeline. two main factions – the UN-backed Govern-
component of Libya’s In a Facebook post, NOC noted that Waha ment of National Accord (GNA), based in Trip-
oil infrastructure in Oil Co. (WOC), one of its production units, oli, and the Libyan National Army (LNA), led by
need of repair and had suspended shipments through the pipe- Khalifa Haftar – last October has cleared the way
maintenance. line that pumps oil to Es Sider, the largest oil for the necessary work to be done.
export terminal on Libya’s Mediterranean Sea Even so, NOC has been concentrating on
coast. It explained that WOC had taken this step bringing output levels back up as quickly as
to address a leak in the pipeline and hoped to possible. Libya’s oil production dropped by
complete repairs soon. The pipe is expected to more than 800,000 bpd in the first five months
resume operations in two weeks, it said. of 2020, bottoming out at less than 100,000 bpd,
In the meantime, it noted, the shutdown has before the finalisation of the ceasefire deal. The
brought Libyan oil output down from 1.25mn downturn left many areas of the country short of
bpd to a little more than 1mn bpd. Most of the fuel and also deprived the government of much-
fields affected by the stoppage are in the Sirte needed revenue.
Basin. GNA and LNA are now trying to form a
The pipeline to Es Sider is not the only com- unity government in order to keep the oilfields
ponent of Libya’s oil infrastructure in need of in production. As of press time, represent-
repair and maintenance. Many of the country’s atives of both sides were still trying to reach
production and processing facilities, pipelines, agreement on the method of choosing the new
refineries, storage depots and terminals have administration. ™

Shell, NNPC units sign domestic

gas supply deal

NIGERIA SHELL Nigeria Gas (SNG), an affiliate of Royal unleashing the industrial potential of Badagry.”
Dutch Shell (UK/Netherlands) involved in Faruk Usman, NGMC’s managing director,
SNC will supply gas to downstream natural gas distribution, has signed pointed out that the deal with SNG was in line
more industrial users. a 20-year domestic supply agreement with a sub- with the Nigerian government’s plans for boost-
sidiary of Nigerian National Petroleum Corp. ing domestic gas consumption. “We continue
(NNPC). to work with credible partners to accelerate the
SNG confirmed the signing at the weekend, marketing and distribution of natural gas to
saying it had agreed to work with Nigerian Gas major industrial users in Nigeria in line with the
Marketing Corp. (NGMC) to deliver gas to vision of the federal government of Nigeria and
industrial consumers and manufacturing facil- the [strategy] of the group managing director of
ities in Nigeria. It did not reveal the value of the Nigerian National Petroleum Corp.,” he said.
deal or the volumes involved, or name any future Osagie Okunbor, the country chairman of
buyers. However, it did say that the gas would go Shell companies in Nigeria, also struck an upbeat
to customers in Ogun and Lagos states. The ship- note, asserting that the agreement between SNG
ments are expected to support industrialisation and NGMC would benefit the national economy.
efforts in the Ota, Igbesa and Agbara districts of “Shell companies in Nigeria will continue to turn
Ogun while also extending SNG’s distribution Nigeria’s domestic gas opportunities into reality
network to Badagry, a town in Lagos, it noted. through our strategic intent to develop enough
Ed Ubong, the company’s managing director, gas to meet our current commitments and future
stressed these points, saying: “This agreement growth plans,” he commented.
will enable local industries to thrive and create SNG is already active in Nigeria’s domestic
employment opportunities for Nigerians. We look gas sector. It is working with partners and local
forward to continuing to grow domestic gas dis- stakeholders to deliver gas to industrial and
tribution to industries and manufacturing plants commercial consumers in Abia, Bayelsa, Lagos,
in Ogun State and other parts of Nigeria while Ogun, Oyo and Rivers states. ™

Week 03 21•January•2021 www. NEWSBASE .com P15